Pension Sub-committee And Pension Board - 27/06/2022

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 27th June, 2022.

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II APOLOGIES

The Sub-Committee and Board noted apologies had been received from Councillor Crichton, George Ramsay, Raymond Boyd and Claire Shepherd.

IIl APPOINTMENT OF NEW PENSION SUB-COMMITTEE AND PENSION BOARD MEMBERS

There was submitted Agenda Note AN42-2022 asking the Pension Sub-Committee and Pension Board to note the following appointments to the Pension Sub-Committee and Pension Board following the Local Government Elections on 5th May, 2022:

Members noted the appointments accordingly.

IV MINUTE OF PREVIOUS MEETING

The minute of meeting of 21st March, 2022 was submitted and approved.

V TAYSIDE PENSION FUND TRAINING AND ATTENDANCE POLICY

There was submitted Report No 177-2022 by the Executive Director of Corporate Services presenting Tayside Pension Funds Training and Attendance Policy which was subject to annual review.

The Sub-Committee and Board approved the Training and Attendance Policy contained in Appendix 1 of the report.

VI TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 178-2022 by the Executive Director of Corporate Services updating the Risk Register for Tayside Pension Fund.

The Sub-Committee and Board approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 8th June, 2022, and note the following changes to risk profile since the previous report:

- Unable to participate in scheme (No 6) - The risk that employers can no longer afford to remain in the Fund.

There had been an increase in likelihood of this risk due to affordability of employer operations and maintaining financial health. In the last year, two small third sector employers had exited the Fund. It should be noted that the Fund had adapted its Funding Strategy to accommodate where possible at minimal risk to remaining Fund employers.

VII TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY

There was submitted Report No 179-2022 by the Executive Director of Corporate Services presenting a revised Risk Policy and Strategy following an internal audit review of Risk Management and Regulatory Compliance.

The Sub-Committee and Board approved the revised Risk Management Policy and Strategy, noting the following changes:

- The introduction of a Risk Appetite Statement (Appendix B of the report)

- A revised Risk Assessment Matrix (Appendix C of the report)

- A revised Risk Register (Appendix D of the report)

VIII PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE TO 31ST MARCH 2022

There was submitted Report No 180-2022 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

The Sub-Committee and Board noted the content of the report.

IX TAYSIDE PENSION FUND ANNUAL GOVERNANCE AND GOVERNANCE COMPLIANCE STATEMENTS

There was submitted Report No 181-2022 by the Executive Director of Corporate Services presenting the Annual Governance Statement and Governance Compliance Statement for approval and inclusion into the unaudited Annual Accounts for the year ended 31st March, 2022. This report set out the governance arrangements of Tayside Pension Fund and the extent to which it complied with regulations.

The Sub-Committee and Board agreed to:-

(i) approve the Annual Governance and Governance Compliance Statements which are included as an Appendix of the report; and

(ii) instruct the inclusion of the statements in the Annual Accounts for the year to 31st March, 2022.

X TAYSIDE PENSION FUND UNAUDITED 2021/2022 ACCOUNTS

There was submitted Report No 182-2022 by the Executive Director of Corporate Services providing some additional commentary on the unaudited Annual Accounts 2021/2022 which were being submitted along with this report.

The Sub-Committee and Board agreed to:-

(i) note the contents of this covering report;

(ii) note the unaudited Annual Accounts which had been submitted along with this report in Appendix A of the report;

(iii) instruct the Executive Director of Corporate Services to arrange for the unaudited accounts to be signed as necessary; and

(iv) instruct the Executive Director of Corporate Services to submit the Annual Accounts to the Funds external auditor.

The Sub-Committee and Board resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

XI TAYSIDE PENSION FUND

(a) PERFORMANCE SUMMARY

There was submitted Report No 183-2022 by the Executive Director of Corporate Services reviewing the investment performance of the Funds investment managers for the quarter to 31st March, 2022. The report compared investment performance of the Fund with the Funds specific benchmarks which consisted of various stock and security market indices.

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 184-2022 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st March, 2022 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 185-2022 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.

The Sub-Committee and Board noted the content of the report.

XII SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 186-2022 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance approved by the Sub-Committee (Article XIV of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 21st March, 2022, Report No 93-2022 refers).

The Sub-Committee and Board noted the information contained within this report with regards to the activities of the Fund Managers during the six-month period ended 31st March, 2022.

XIII EXITING EMPLOYER REPORT - CAROLINA HOUSE TRUST

There was submitted Report No 187-2022 by the Executive Director of Corporate Services detailing the request from Carolina House Trust to exit as employers from Tayside Pension Fund.

The Sub-Committee is asked to note the information contained within this report, and approved the employer exit as at 31st March, 2022.

XIV PRESENTATION

Patrick Bone from Schroders gave a short presentation to the Sub-Committee and Board.

After Mr Bone had given his presentation and answered questions from members, the Chair thanked the presenter on behalf of members of the Sub-Committee and Board.

Willie SAWERS, Chair.